Standard & Poor’s said Thursday it raised its credit outlook for South Korea’s LG Electronics from the current BBB Negative to BBB Stable, considering the company’s improving profitability.

The international credit rating agency said LG’s strategy for the premium electronics market worked well in the first quarter, and its profitability is forecast to rise above market averages for the next two years.

The agency also added that LG is expected to reduce losses in the smartphone business by a significant rate through strong cost-cutting efforts in the next few years. 

By Song Su-hyun (song@heraldcorp.com)